Streamline your financial objectives and risk assessments with our comprehensive Non-Discretionary Investment Management Agreement Template workflow.
1
Identify Client's Financial Objectives and Goals
2
Assess Client's Risk Tolerance and Investment Preferences
3
Conduct Market Analysis and Research
4
Design an Investment Strategy
5
Approval: Investment Strategy
6
Preparation of the Non-Discretionary Investment Management Agreement
7
Review Legal and Regulatory Considerations
8
Approval: Legal Team
9
Set up Meeting to Discuss the Prepared Agreement
10
Discuss the Terms and Conditions of the Agreement with the Client
11
Seek Client's Feedback
12
Revise the Agreement Based on Client's Feedback
13
Approval: Client's Feedback
14
Prepare the Final Version of the Agreement
15
Obtain Client's Signature and Final Approval
16
Initiate Investment Transactions
17
Set up Periodic Reviews and Reports for the Client
18
Record all Documentation for Future Audits
19
Report to Regulatory Bodies
20
Implement a Continuous Monitoring and Adjustment Procedure
Identify Client's Financial Objectives and Goals
In this task, you will work closely with the client to understand their financial objectives and goals. What are their short-term and long-term financial goals? What are they hoping to achieve through their investments? This information will guide the entire investment management process, ensuring that the client's needs and aspirations are met.
Assess Client's Risk Tolerance and Investment Preferences
Understanding the client's risk tolerance and investment preferences is crucial for developing an investment strategy that aligns with their expectations. What level of risk are they comfortable with? Are they looking for conservative or aggressive investment options? By assessing these factors, you can ensure that the client's investment portfolio is tailored to their risk appetite and preferences.
1
Conservative
2
Moderately conservative
3
Moderate
4
Moderately aggressive
5
Aggressive
1
Stocks
2
Bonds
3
Real estate
4
Mutual funds
5
Commodities
Conduct Market Analysis and Research
Thorough market analysis and research are essential for making informed investment decisions. It involves studying market trends, analyzing economic indicators, and evaluating investment opportunities. By understanding the market conditions and identifying potential risks and rewards, you can develop a well-informed investment strategy.
Design an Investment Strategy
Based on the client's financial objectives, goals, risk tolerance, and investment preferences, design a tailored investment strategy. How will you allocate assets? Which investment vehicles will you use? Consider diversification, asset allocation, and risk management to develop a well-balanced and efficient investment strategy that aligns with the client's goals.
Approval: Investment Strategy
Will be submitted for approval:
Design an Investment Strategy
Will be submitted
Preparation of the Non-Discretionary Investment Management Agreement
Prepare the non-discretionary investment management agreement, which outlines the terms and conditions of the investment management services provided. The agreement should clearly define the responsibilities of both parties and provide a framework for the client-advisor relationship.
Review Legal and Regulatory Considerations
Before finalizing the investment management agreement, carefully review all legal and regulatory considerations. Ensure compliance with relevant laws and regulations, including those related to financial advisory services, securities, and client data protection.
Approval: Legal Team
Will be submitted for approval:
Preparation of the Non-Discretionary Investment Management Agreement
Will be submitted
Review Legal and Regulatory Considerations
Will be submitted
Set up Meeting to Discuss the Prepared Agreement
Schedule a meeting with the client to discuss the prepared non-discretionary investment management agreement. This is an opportunity to address any questions or concerns the client may have and ensure that both parties are aligned on the terms and conditions of the agreement.
Discuss the Terms and Conditions of the Agreement with the Client
In the meeting, thoroughly discuss the terms and conditions of the non-discretionary investment management agreement with the client. Ensure that the client understands their rights and obligations as outlined in the agreement. Address any queries or clarifications they may require.
Seek Client's Feedback
After discussing the terms and conditions, seek the client's feedback on the non-discretionary investment management agreement. Did they understand the agreement? Are they satisfied with the terms and conditions? This feedback will help ensure that the agreement accurately reflects the client's expectations.
Revise the Agreement Based on Client's Feedback
Based on the client's feedback, revise the non-discretionary investment management agreement if necessary. Address any concerns or suggestions raised by the client to ensure that the final agreement meets their expectations.
Approval: Client's Feedback
Will be submitted for approval:
Discuss the Terms and Conditions of the Agreement with the Client
Will be submitted
Revise the Agreement Based on Client's Feedback
Will be submitted
Prepare the Final Version of the Agreement
With the client's feedback incorporated, prepare the final version of the non-discretionary investment management agreement. Ensure that all revisions are accurately reflected in the agreement document.
Obtain Client's Signature and Final Approval
Once the final version of the non-discretionary investment management agreement is ready, obtain the client's signature and final approval. This signifies their formal agreement to the terms and conditions outlined in the agreement.
Initiate Investment Transactions
Once the agreement is signed and approved, initiate the necessary investment transactions as per the agreed-upon investment strategy. Execute the buy and sell orders, allocate assets, and ensure timely and accurate implementation of the investment plan.
Set up Periodic Reviews and Reports for the Client
Establish a system for periodic reviews and reports to keep the client informed about the performance of their investment portfolio. Determine the frequency of reviews and reports and ensure that they are comprehensive and easy to understand.
Record all Documentation for Future Audits
Maintain organized, accurate, and up-to-date records of all documentation related to the non-discretionary investment management process. This includes the investment management agreement, client communication, transaction records, and periodic reports. Proper documentation ensures transparency, facilitates future audits, and helps protect both the client and the advisor.
Report to Regulatory Bodies
Comply with reporting requirements set by regulatory bodies. Submit the necessary reports on time and provide accurate and relevant information as required by the regulations governing investment management services.
Implement a Continuous Monitoring and Adjustment Procedure
Implement a system for continuous monitoring and adjustment of the investment portfolio. Regularly review the performance, assess the market conditions, and make necessary adjustments to align with the client's goals and market trends. This ensures that the investment strategy remains optimal and responsive to changing market dynamics.
